Malaysia agency says money in Razak’s personal account isn’t from 1MDB

(The Wall Street Journal) – Malaysia’s anticorruption agency said Monday that 2.6 billion ringgit (about $700 million) was deposited into Prime Minister Najib Razak’s personal account and that the money was from a “donor contribution,” not from 1Malaysia Development Bhd, a state investment fund also known as 1MDB.

The Malaysian Anti-Corruption Commission didn’t say, however, who the donor was, nor the purpose of the contribution. MACC officials didn’t immediately respond to further queries.

“Results of the investigation found that 2.6 billion ringgit alleged to have been deposited into an account belonging to the Prime Minister was a donor contribution and not from 1MDB,” the commission said in a statement.

On July 2, The Wall Street Journal reported that Malaysian investigators had traced nearly $700 million of deposits into what investigators believe were Mr. Najib’s personal bank accounts after the movement of cash among agencies, banks and companies linked to 1MDB. The Journal has reported that the original source of the money was unclear and that the government investigation hadn’t detailed what happened to the money that allegedly went into Mr. Najib’s personal accounts.

The prime minister’s office didn’t immediately respond to a request for comment. Mr. Najib, who heads 1MDB’s advisory board, previously has denied any wrongdoing or taking any money for personal gain.

Authorities so far have detained eight people and are currently seeking two former 1MDB executive directors to assist the investigation into the activities of 1MDB, which had racked up more than $11 billion in borrowings while facing a cash crunch.